Koh Tao nominee crackdown finds 2 tourism businesses in breach

Thailand's Department of Business Development (DBD) conducted a search of 12 tourism businesses in Koh Tao, Surat Thani, uncovering two companies breaching laws. Inspector General Poonphong Naiyanapakorn announced the August 17 inspection as part of a joint effort to target nominee businesses in Thailand's tourism sector. The DBD, along with the Department of Tourism, the Office of the Permanent Secretary of the Ministry of Tourism and Sports, Tourist Police Bureau, and Immigration Bureau, focused on foreign-owned tourism companies.

Among the inspected businesses, one operated a diving instruction service seeking hostel permission. It had two authorized directors, one foreign and one Thai. Despite this, the business structure violated the Tourism Business and Guide Act, requiring more than half of its directors to be Thai nationals. Consequently, the DBD revoked the company's license, and a foreign diving instructor was found working without a permit.

The second company, found operating without a license, was subsequently directed by the Department of Tourism to face legal action. Inspecting the remaining ten target companies, officials found one temporarily closed and nine legally operating, mostly in the diving or diving instruction industry. These businesses had valid work permits for their foreign directors and employees, and Thai shareholders held management positions.

DBD Director-General Poonphong Naiyanapakorn emphasized that the DBD would continue investigating nominee businesses using linked databases and technology to analyze risk and identify potential illegal activity. He urged Thai and foreign business operators and companies providing advice on company registration and investment to comply strictly with Thai business laws and foster transparent business practices.